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Economics of Social Capital

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Author Info
PARTHA DASGUPTA
Abstract

The literature on the idea of 'social capital' is now enormous. Offering an alternative to impersonal markets and coercive states, the communitarian institutions built around social capital have looked attractive to scholars in the humanities and social sciences. The literature in consequence has a warm glow to it. In this article, I first study the various contexts in which the promises people make to one another are credible and then suggest that the accumulation of social capital is a possible route to creating such a context. I offer a tight definition of social capital - namely, interpersonal networks - so as not to prejudge its ability to enhance human well-being. The links between the microfoundations of social capital and the macroeconomic performance of economies are then studied. I also show that economic theory not only identifies circumstances in which communitarian institutions can function well, but that it also uncovers a dark side, namely, their capicity to permit one group to exploit another within long-term relationships. Copyright 2005 The Economic Society Of Australia.

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Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 81 (2005)
Issue (Month): s1 (08)
Pages: S2-S21
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Handle: RePEc:bla:ecorec:v:81:y:2005:i:s1:p:s2-s21

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  1. Agurto Adrianzen, Marcos, 2009. "The Role of Social Capital in the Adoption of Firewood Efficient Stoves in the Northern Peruvian Andes," MPRA Paper 15918, University Library of Munich, Germany. [Downloadable!]
  2. Akcomak, Semih, 2009. "Bridges in social capital: A review of the definitions and the social capital of social capital researchers," UNU-MERIT Working Paper Series 002, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  3. Diego Caramuta, 2005. "A Dynamic Approach to the Relationship between Inequality, Social Capital and Institutions," Development and Comp Systems 0506009, EconWPA. [Downloadable!]
  4. Dominic Rohner, 2008. "Reputation, Group Structure and Social Tensions," HiCN Working Papers 40, Households in Conflict Network. [Downloadable!]
  5. Gilles, Robert P. & Lazarova, Emiliya A. & Ruys, Pieter H.M., 2006. "Stability, specialization and social recognition," Discussion Paper 17, Tilburg University, Center for Economic Research. [Downloadable!]
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  6. David, Antonio C. & Li, Carmen A., 2008. "Exploring the links between HIV/AIDS, social capital, and development," Policy Research Working Paper Series 4679, The World Bank. [Downloadable!]
  7. Neri, Frank & Ville, Simon, 2006. "The Social Capital Experience of International Students in Australia: The Wollongong Experience," Economics Working Papers wp06-19, School of Economics, University of Wollongong, NSW, Australia. [Downloadable!]
  8. Thierry Debrand & Nicolas Sirven, 2008. "Promoting Social Participation for Healthy Ageing - A Counterfactual Analysis from the Survey of Health, Ageing, and Retirement in Europe (SHARE)," Working Papers DT7, IRDES institut for research and information in health economics, revised Jan 2008. [Downloadable!]
  9. Tomomi Tanaka & Colin F. Camerer & Quang Nguyen, 2006. "Preferences, Poverty and Politics: Experimental and Survey Data from Vietnam," Levine's Bibliography 321307000000000054, UCLA Department of Economics. [Downloadable!]
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